Table of Contents
Dear Sir/Madam:
The remuneration package that I have prepared to offer to Shannon Albright is competitive and within the industry standard and company budget and compensation structure. It is important to note that Shannon is a Certified Public Accountant with a five-year experience in an entry position so we could no longer offer an entry position pay for her. Such, the basic pay of $70,000 is reasonable and justifiable considering that Shannon Albright is already a CPA with five years of experience.
In addition to the basic salary, a combination of additional compensation (i.e. overtime and holiday pay) combination of compensation package, incentive and benefits plan will also be offered to her where she will appreciate the fact that the company rewards performance and treat its employees as partners.
In addition to the basic pay of $ 70,000, Shannon will also be offered above industry overtime and holiday pay of 5 %. After six month observation period, her salary will also increase by15 %. And to motivate Shannon to perform, she will be given a 20 % bonus if she does well in our performance appraisal. That is in addition to the 15 % bonus if her team also well in the appraisal. To impress upon Sharon that the company treats its employees as partners, she will be given few stocks after six months and then will be cumulatively given more as she ages in the company.
Other benefits that will be given to Sharon will include health insurance through an HMO. The coverage of her insurance will include all her direct dependents. In addition, she is also eligible to for a two week vacation leave and a two week sick leave per annum. If these leaves are not used, Shannon can convert it to cash. She will also be given an early retirement savings package through the 401(k) package to prepare for her retirement early. And if she opts to pursue her graduate studies, her tuition will be for free provided that she will stay for additional two years in the company after graduation.
The above stated compensation package, incentive and benefits plan is already comprehensive. It is competitive in the industry and within the compensation and pay structure of the company. It also integrates the values of the company such as treating our employees as partners through stock options and company bonus. If this package will be offered to Shannon, it is very likely that she will accept the job offer.
Truly yours,
Background of Shannon Albright
Shannon Albright graduated college with a degree in accounting from a reputable U.S. university. She also passed the board exam and is now a Certified Public Accountant. In addition, she also has five-year gainful experience from her first job in an entry-level accounting position in Atlanta, Georgia. Shannon Albright therefore, is a strong candidate and is ideal for the position in the company. The following will be the competitive offer to Shannon that is within company pay structure for her to accept the position.
Compensation package
Salary – the starting base salary that will be offered to Shannon Albright will be $ 70,000 per annum. This salary is competitive because it is higher than the salary of an average accounting graduate which is $65,940 per year (Johnson and Wales University, nd). The excess to the average pay of an accountant is justified by the fact that Shannon is a CPA with 5 years experience and therefore, could no longer be offered an entry level salary. The salary is also within the industry salary range of $43,366 – $99,911 (www.payscale.com, 2016) making it competitive and reasonable.
Holiday work pay – Shannon will be given an additional 5% above the law mandated pay on holiday work pay.
Overtime – Additionally, Shannon will also be given 5% more than the mandated minimum overtime pay to motivate the candidate to do extra work.
Incentive plan
Salary increase after regularization – Shannon will receive a 15 % salary increase after completing the six month observation period.
Performance appraisal bonus – Shannon will be given 20 % bonus if she exceeds the criteria of the annual performance appraisal.
Unit productivity bonus – additional 15% bonus will be added if Shannon’s team will exceed the metric imposed on the group.
Profit sharing – as the name implies, this additional pay is contingent upon the net income of the company. If the company has a higher net income, the profit sharing rate will be higher.
Benefits plan
Paid vacation – Shannon will be given a total of two weeks paid vacation leave per year. If this vacation leave will not be used, Shannon may convert it to cash to be credited on her salary.
Sick leave – Shannon will be given two weeks paid sick leave. If this sick leave will not be used, Shannon may convert it to cash to be credited on her salary.
Insurance coverage – a comprehensive health insurance coverage through an HMO will be given to Shannon. The coverage of the health insurance will include Shannon’s immediate family (husband, parents, children).
Retirement plan – A retirement savings package will also be given in the form of 401(k) package to enable Shannon to prepare for her retirement early in her career (www.wsj.com, nd).
Stock option – stock option will be given to Shannon after six month of stay in the company. “ Stock Option Plan gives the company the flexibility to award stock options to employees” (Harroch, 2016). The number of stock will cumulatively increase depending on the number of years that Shannon will stay on the company.
Educational subsidy – Should Shannon pursue a post-graduate degree (i.e. MBA) her tuition will be subsidized by the company provided she will stay in the company for an additional two years after graduation.
- Certified Public Accountant (CPA) Salary (United States) United States Home Change Country Don’t see what you are looking for?Get A Free Custom Salary Report ». (n.d.). Retrieved March 09, 2017, from http://www.payscale.com/research/US/Job=Certified_Public_Accountant_(CPA)/Salaryhttps://online.jwu.edu/blog/finance-which-degree-is-right?Searchengine=Google&SearchEngineCampaign=AccountingvsFinance&SearchKeyword=%2Baccounting%20%2Bsalary&gclid=Cj0KEQjw9vi-BRCx1_GZgN7N4voBEiQAaACKVld7Yho4fwPOv7ZQkAJkm5oEiU2KHc9WCpkR9bWlvZMaAndk8P8HAQ
- Finance Vs. Accounting: Which Degree is for Me? [ILLUSTRATION]. (2016, February 30). Retrieved March 09, 2017, from https://online.jwu.edu/blog/finance-which-degree-is-right?Searchengine=Google
- Harroch, R. (2016, February 27). How Employee Stock Options Work In Startup Companies. Retrieved March 09, 2017, from https://www.forbes.com/sites/allbusiness/2016/02/27/how-employee-stock-options-work-in-startup-companies/#6bf8ec266633
- What Is a 401(k)? (n.d.). Retrieved March 09, 2017, from http://guides.wsj.com/personal-finance/retirement/what-is-a-401k/?mg=id-wsj